The Executive Condominium (EC) market in Singapore has always been positioned as the perfect middle ground between public and private housing. However, with rising EC prices and strict financing rules, the question arises: Is it still serving its intended purpose?

Currently, the income ceiling for EC buyers is $16,000, and the Mortgage Servicing Ratio (MSR) caps monthly loan repayments at 30% of income. Given today’s EC prices—often exceeding $1.3 million—this significantly limits the amount buyers can borrow, requiring higher down payments. This can put the sandwich class in a financial bind, making it harder for HDB upgraders to transition to ECs.

On the other hand, maintaining the income ceiling and financing restrictions ensures that ECs remain affordable relative to private condos. If developers are forced to keep prices reasonable, ECs continue to be an accessible stepping stone to private homeownership.

As EC demand remains strong, the government faces a tough balancing act—ensuring affordability while preventing overleveraging. Will future policy adjustments be necessary to keep ECs within reach for aspiring homeowners? Time will tell.